CCC Intelligent Solutions Holdings Inc.

CCC reported second-quarter 2026 revenue of $286 million, up 10% year over year, and adjusted EBITDA of $115 million, up 7% year over year. Adjusted gross profit was $217 million with adjusted gross margin of 76%, down from 77% last quarter and 78% a year ago; adjusted EBITDA margin was 40%, down about 110 basis points year over year, though management said it was roughly flat excluding a $2 million one-time benefit in Q2 2025. Free cash flow was $82 million in the quarter versus $27 million in Q2 2025, and trailing-12-month free cash flow was $308 million, up 36% year over year, with free cash flow margin of 28% versus 23% a year ago. For Q3 2026, guidance is revenue of $289.5 million to $291.5 million and adjusted EBITDA of $118 million to $120 million. For full-year 2026, guidance is revenue of $1.158 billion to $1.164 billion and adjusted EBITDA of $485 million to $491 million; management said the revenue midpoint now implies about 10% growth. Stock-based compensation is expected to be 11% to 12% of revenue for full year 2026, down from an earlier estimate of 13%.

Githesh Ramamurthy framed the quarter around three themes: CCC is benefiting from AI, customer momentum is strengthening, and rising industry complexity increases the value of its platform. He emphasized that customers want business outcomes, not models, and said CCC’s AI works because it is embedded in workflows and connected across the insurance ecosystem. His tone was upbeat and confident, repeatedly pointing to production-scale adoption, multiyear commitments, and the company’s position as the “network of action” for the insurance economy.

Interim CFO Rod Christo said Q2 revenue and profitability were ahead of expectations and highlighted the quality of growth: about 7.5 points came from cross-sell, upsell, and AI adoption, while about 2.5 points came from new logos. He noted AI-based solutions contributed 4 points of growth and now represent about 11% of revenue, growing roughly 45% year over year. On margins and cash, he cited 76% adjusted gross margin, 40% adjusted EBITDA margin, $116 million of cash and cash equivalents, $1.3 billion of debt, net leverage of 2.5x adjusted EBITDA, and $82 million of quarterly free cash flow. He also said stock-based compensation is now expected at 11% to 12% of revenue for 2026, down from 13%, and reiterated commitment to balancing investment, leverage, and shareholder returns.

Analysts focused on how quickly AI wins are translating into broader deployment and whether the company’s ecosystem creates more durable customer value. Management said customers typically test solutions extensively before scaling them, and that deployments are accelerating because customers are seeing real value in cycle time, efficiency, and customer experience. Questions also probed the mix of AI growth, and management said it is being driven by both existing customers expanding into new modules and new customer adoption; they also stressed that AI is additive to the core platform, with renewals and mid-cycle add-ons both contributing. On guidance, management said the second-half growth profile is unchanged aside from a roughly 1-point headwind from legacy first-party catastrophe fleet business, and they declined to give 2027 expectations.